In an interview to CNBC-TV18, Anil Manghnani of Modern Shares & Stock Brokers, spoke about his reading of the market and his outlook.

Below is a verbatim transcript:

Q: Crushing blow for the index yesterday. Even on a medium-term, do you still see strength on the index or is this now looking like a weak market or a market in a bear patch?

A: I mentioned how stocks first tend to drift and then when they break through some crucial levels, the fall gets accentuated. That is what happened in the Nifty yesterday. We have been talking about the 5,820-5,830, which was the crucial 20-week moving average. Once that got taken out, you saw how the panic set in even in some of the largecap names that have been fairly okay through this fall be it an ICICI Bank , Axis Bank , some of the bigger names like Dr Reddys Laboratories , Bajaj Auto - all of them are starting to come off. These were the ones that held off in the move from 6,100 to up to about 5,900. So generally when a major level gets taken out, it is no surprise to see panic .

The other crucial thing we talked about is we were not able to take advantage of positive global cues right through January and first half of February. Now when the world markets have gotten a little volatile and choppy on any down day out there, we are obviously following in line with the rest of them. So, what happened yesterday is a double whammy for us, one is the world market scenario and the second was we broke through some crucial supports on the index.